Paramount gets $1bn Chinese funding

Paramount Pictures entrance Image copyright Getty Images

US film company Paramount Pictures has secured a $1bn (£810m) cash injection from two Chinese firms.

As part of the deal, Shanghai Film Group and Huahua Media will finance about a quarter of all Paramount's films over the next three years.

The partnership gives Paramount an entry point into China, the world's second biggest box-office market.

Viacom-owned Paramount said the investment would help fund future projects to help grow the studio.

"Shanghai Film Group's long and successful history as a prolific studio, coupled with Huahua's strong track-record in the Chinese market and its growing reach globally, make this a natural and powerful move for Paramount," said Brad Grey, Paramount Picture's chief executive.

The terms of the deal were finalised in November last year, when Mr Grey was in Shanghai.

Shanghai Film Group was an investor in Paramount's Jack Reacher: Never Go Back movie.

The Paramount partnership follows other Chinese companies investing heavily in Hollywood.

Image copyright Getty Images

Last year Dalian Wanda spent $3.5bn on a controlling stake in US film studio Legendary Entertainment.

Turtle flop

The Paramount deal comes as Viacom tries to revive its fortunes.

Its most recent earnings were hit by poor box-office results for Paramount's Teenage Mutant Ninja Turtles: Out of the Shadows.

Meanwhile its cable channels Nickelodeon and Comedy Central have struggled to maintain audiences as younger viewers increasingly watch entertainment on mobile devices and computers.

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